Bangladesh: Strengthening Railway Logistics and Connectivity for Ports, Inland, and the Region
Description
SELECTION OF CONSULTING FIRMS BY THE WORLD BANK GROUP
REQUEST FOR EXPRESSION OF INTEREST (EOI)
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ASSIGNMENT OVERVIEW
Assignment Title: Bangladesh: Strengthening Railway Logistics and Connectivity for Ports, Inland, and the Region
Assignment Countries:
Bangladesh
ASSIGNMENT DESCRIPTION
Bangladesh Railway (BR), under the Ministry of Railways (MoR), is the state-owned national railway, operating a network of approximately 3,000 kilometers and providing both passenger and freight services. While BR’s freight operations are significantly more profitable than its passenger services—accounting for one-third of total revenue and delivering much higher margins—the overall system remains heavily oriented toward passenger transport. Despite the strategic importance of rail freight, BR’s share of the national freight market has stagnated at around 4%, far below regional and international standards. This limited modal share is largely due to persistent challenges in freight operations and infrastructure, resulting in a heavy reliance on road transport. Consequently, logistics costs in Bangladesh remain high compared to neighboring countries, and the economy misses out on substantial development opportunities.
A major obstacle to efficient freight operations is the acute shortage of operational locomotives. Of BR’s total fleet of 281 locomotives, more than 90 are inactive and aging, frequently suffering mechanical failures. This shortage has led to a sharp decline in container train services from Chattogram Port, dropping from 120 monthly trains in previous years to just 50–60. Overall annual freight train services have also decreased significantly, from 4,273 in FY2021–22 to 3,387 in FY2022–23, with only 2,285 services operating in the eleven months leading up to November 2025. As a result, industries face delays and increased costs, prompting a shift to road transport.
Another key constraint is the limited rail connectivity with other transit modes, particularly for containers. Currently, the railway connects only to Chattogram Port at the Chattogram Goods Port Yard (CGPY) and to Kamalapur Inland Container Depot (ICD) in Dhaka. The restricted cargo handling capacity at Kamalapur ICD leads to long container waiting times at CGPY, further exacerbating operational inefficiencies and increasing logistics costs.
Beyond rolling stock and infrastructure challenges, BR’s management and organizational structure present additional hurdles. BR is organized as a government department, rather than adopting the commercially oriented, operations-focused structures common internationally. Its accounting system is not designed to measure the performance of individual services, which contributes to ongoing financial losses—a working ratio of 1.57 and a net loss of USD 10.8 billion—with operating expenses rising faster than revenues.
In recent years, BR has taken steps to increase rail infrastructure capacity, particularly along the Dhaka–Chattogram corridor, through dual-gauging and dual tracking of trunk lines. However, further expansion of freight operations is constrained by limited fiscal space. In light of this, Private Sector Participation (PSP)—including licensing of wagon operations and the development of road-rail intermodal terminals—offers a realistic pathway to improving service quality, operational efficiency, and financial sustainability. At present, however, BR lacks the institutional and regulatory capacity and experience required for PSP, and there is no dedicated PPP policy framework for railways, especially for PSP in operations.
This activity is a Bank Executed (BE) consultancy, funded under the China World Bank Partnership Facility (CWPF), and is designed to identify technical and institutional solutions to these challenges. The focus is on improving rail and port connectivity, supporting a modal shift from road to rail, and unlocking Bangladesh’s potential as a regional trade hub. Additionally, the consultancy aims to identify opportunities and establish a pathway for Private Sector Participation (PSP) in the railway sector.
This consultancy will supplement and complement the Green Railway Transport Project Programmatic Project Preparation Advance (Green Rail PPA), which aims to: (i) strengthen rail links to ports and logistics facilities, procure new locomotives, and enhance maintenance facilities for tracks and locomotives; (ii) reconfigure Kamalapur Railway Station to enable station redevelopment and transit-oriented development; and (iii) redevelop Dhaka Biman Bandar
(Airport)
Station.
FUNDING SOURCE
The World Bank Group intends to finance the assignment / services described below under the following:
TF0D0762: CWPF
ELIGIBILITY
Interested firms should demonstrate proven experience in railway freight sector reform, railway logistics, private sector participation (PSP), and implementation of World Bank-financed projects in their expressions of interest. Required qu
About This Opportunity
This is a consulting contract in the transport and logistics and architecture and engineering sectors. Located in Bangladesh, Asia, this opportunity is open to firms and consortiums. Proposals must be submitted before May 14, 2026.
Published through WB eGP - World Bank e-Government Procurement, a multilateral development bank that follows standardized international procurement guidelines. Projects funded by multilateral institutions are generally open to international bidders from eligible member countries for consulting in the transport and logistics sector. Consulting assignments are typically evaluated with a strong emphasis on the technical proposal, including the methodology and qualifications of key experts. Shortlisted firms may be invited to submit financial proposals in a second stage. Interested parties should review the full documentation on the original source before submitting their proposal.